GOVERNMENT URGED TO PROTECT SMALL CONSTRUCTION BUILDERS

Indonesia finally extended easy procedure for Company Conversion Certificate Conversion [SBU] until September 30, 2014. The extention was pursuant to the letter of the Head of Construction Counseling No. IK.02.01-KK/492 dated June 30 2014 due to little number of companies benefiting conversion facilities of SBU/SKA. By this regulation, easy conversion or provincial LPJK without verification by association of the respective field.

Vice Chairman of the Gapensi Association Achmad Hanafiah stated on Friday [4/7] extention of eased conversion of SBU from old style to new way must protect small conversion companies. Data of Gapensi had it that the number of companies doing conversion or extention of company certificate was posted at 38,029 companies. In the past integrated companies was posted at 108,583 in early 2014. In the past, only 35.02% companies were making SBU extention of conversion as requirement before joining tender among Government and private circles.

According to Ahmad, supposedly all procurements in Government or private circles by July 1 should be based on the Ministry of Public Works No. 08.2011. Besides, of 70,955 experts in construction, only 51,387 were noted as doing conversion or new application for obtaining SKA. With application of Permen PU No 08. 2011, although the number of enlisted construction service agencies was still less than the previous data, it was still expected there would be correction in quality of construction service.

To refer to Gapensi data, of the existing companies 90% were small companies, so certification by the Ministry would burden small companies because less room for the company to move. They said that the narrow room was due to requirements for contract record for the first 10 years. For that matter he proposed convenience for small business like enclosing working contract of the last 2 years in applying for new SBU or extending. “Small businesspeople must be protected. It must not happen that just because of the new regulation small business found it hard to develop.”

Meanwhile toward Asean Single Market in 2015 next, predictably construction in Indonesia would be the target market of foreign constructors in Asean. Report of the Ministry of Public Works had it that the local construction market was worth Rp 450 trillion per year based on population of 240 million people, while at Asean regional level, the size of market was around Rp 1,800 trillion per year with population of around 600 million.

Secretary General of the Ministry of PU Agoes Widjanarko stated that trade liberalization did not mean absolute liberazation but rayher a common market regulated on equal principle and gradually exercised based in the principle of healthy competition. Therefore the formation of Asean Single market as MEA element was not only for head-on competition among Asean nations but integrate and be intercomplementary toward regional competitiveness to face external competition. (SS) 

Business New - July 11, 2014